The national basics guides cover the core P&C concepts: insurable interest, indemnity, negligence, actual cash value and replacement cost, and policy conditions. This guide collects the Wisconsin rules that apply across property and casualty lines:

• Wisconsin's comparative negligence rule
• the valued policy law for homes
• property insurance statutes
• required liability policy terms
• cancellation and renewal notices
• rate regulation
• the Insurance Security Fund

Auto rules are in the Wisconsin Personal Auto Policy guide. Risk-sharing plans and surplus lines are in the Wisconsin Other Casualty guide.

Negligence (Wis. Stat. 895.045)

• A claimant recovers only if their negligence was not greater than that of the person they sue. Fault is measured separately against each defendant. Damages are reduced by the claimant's share.
• A defendant 51% or more at fault is jointly and severally liable. A defendant less than 51% at fault pays only its share.

Property insurance (Wis. Stat. 632.05 to 632.101)

• Valued policy law (632.05(2)): when owner-occupied dwelling property is wholly destroyed without criminal fault by the insured, the loss is conclusively the policy limit.
  • It covers dwellings of up to four units and seasonal dwellings.
  • Property partly destroyed but ordered razed counts as wholly destroyed.
  • It doesn't apply to outbuildings, mobile homes, or buildings under construction (Ins 4.01).
  • It doesn't let the insured collect the full limits of several policies. Recovery is still capped at the actual loss (631.43(1); Wegner v. West Bend, 2007).
• Replacement cost coverage may pay to replace with new materials of like size, kind and quality (632.05(1)).
• A lender may not require coverage on improvements above the greater of replacement value or market value (632.07).
• Mortgage clause (632.08): a loss of $500 or less on real property is paid to the insured owner, unless the mortgagee is a named insured.
• Insurance on property located in Wisconsin is governed by Wisconsin law (632.09).
• Domestic abuse: an insurer may not deny an innocent insured's property claim for damage caused by an abuser if the insured didn't cooperate in or contribute to it and the abuser is prosecuted. Abuse information must be kept confidential (631.95).
• Wisconsin dropped the standard fire policy in 1976. Ins 6.76 now lists what property forms must address, such as the property location, other insurance, mortgagee rights and duties after loss.
• A fire escrow law (632.10 to 632.104) applies to fire and explosion losses on real property in a first-class city, with exceptions such as qualifying owner-occupied one- and two-family homes.

Liability policies (Wis. Stat. 632.22 to 632.26)

• The insured's bankruptcy doesn't reduce the insurer's liability to injured people (632.22).
• An injured person may sue the insurer directly, without first getting a judgment against the insured (632.24).
• Notice to any authorized agent of the insurer in Wisconsin, with enough information to identify the insured, is notice to the insurer. Late notice doesn't defeat coverage if timely notice wasn't reasonably possible (632.26).
• If a policy lets a party ask a court to appoint an appraiser or umpire, any Wisconsin court of record except the Court of Appeals and Supreme Court may appoint one (631.85).

Cancellation and renewal (Wis. Stat. 631.36)

• After 60 days in force, a policy may be cancelled midterm only for nonpayment or for grounds stated in the policy, such as material misrepresentation, a substantial change in risk or a substantial breach.
• A nonrenewal notice explains how to apply to any available risk-sharing plan.
• If cancellation or nonrenewal is tied to the agent's termination, the insurer must offer to continue the policy on written request if the insured meets normal underwriting standards.

Rates (chapter 625)

• P&C rates are filed within 30 days after they take effect. No prior approval is needed, except for workers compensation and the auto and property risk-sharing plans (625.13). The Commissioner may disapprove a rate after a hearing.
• Rates are presumed not excessive if reasonable price competition exists (625.11).
• Insurers may not refuse or rate a risk only on factors such as criminal record, physical condition, age, marital status, sexual preference or moral character without credible supporting data. An insurer may not require a physical exam unless it pays for it (Ins 6.54).

Other contract rules

• If several insurers cover the same loss with inconsistent terms, they are jointly and severally liable, but the insured recovers no more than the loss (631.43(1)).
• Nonwaiver clauses are allowed but don't block waiver or estoppel in an appropriate case (631.48).

Insurance Security Fund (chapter 646)

The fund pays claims of authorized insurers in liquidation, up to $300,000 per risk or loss, with a $500,000 aggregate for property and liability. Workers compensation claims aren't capped. Town mutuals aren't covered.

Common exam traps

• Wisconsin compares fault against each defendant separately.
• The valued policy law applies only to an owner-occupied dwelling that is wholly destroyed.
• A mortgage-clause loss of $500 or less goes to the owner.
• A lender can't require coverage above the greater of replacement or market value.
• An injured person may sue the liability insurer directly.
• Midterm cancellation takes 10 days. Nonrenewal takes 60 days.
• P&C rates are file-and-use, filed within 30 days after use. Workers comp is the exception.